The State Bank of Pakistan (SBP) has opted to keep the interests rate unchanged on Monday at 10.5pc, amid trade and industry sectors advocating for a major cut.
During last meeting on December 15, 2025, the Monetary Policy Committee (MPC), surprising market expectations, cut the policy rate by 50 basis points to 10.5%.
Analysts now anticipate a further reduction of 50 to 100 basis points in today’s policy announcement, which could bring the rate down to 9.5–10 percent. This expectation is supported by easing inflation, rising foreign exchange reserves, and a relatively stable Pakistani rupee.
The Monetary Policy Committee has decided to keep the policy rate unchanged at 10.5 percent in its meeting held on January 26, 2026.
For details: https://t.co/IyaTFO6mbh#SBPMonetaryPolicy pic.twitter.com/bWLBgkRliZ— SBP (@StateBank_Pak) January 26, 2026
During the presser, SBP Governor Jameel Ahmad said that inflation in Pakistan could be above 7% in some months of the current year’s second half.
The country’s gross domestic product (GDP) would grow by 3.75% to 4.75% this year, Ahmad added.
However, the MPC committee acknowledged that the trade deficit had widened due to a substantial increase in imports and a decline in exports.
